rio reiterates goal of organic growth, acquist

Rio Tinto Reiterates Goal Of Organic Growth, Acquisitions

By Robb M. Stewart
Published April 14, 2011
Dow Jones Newswires

MELBOURNE -(Dow Jones)- Anglo-Australian mining company Rio Tinto PLC (RIO: 71.70, +0.04, +0.06%), fresh from securing control of coking coal producer Riversdale Mining Ltd. (RIV.AU), has committed itself to further acquisitions in addition to organic growth.

Rio's board has earmarked a further US$13 billion in capital expenditure this year and Chairman Jan du Plessis said the company will also continue to invest in "carefully targeted" small- to medium-sized acquisitions.

"Riversdale Mining, the Australian-listed company with strategic coal interests in Mozambique, is a good example of this," du Plessis said the text of a speech he delivered Thursday to shareholders at the company's annual meeting in London.

The company has said it will invest in and and operate large, long-term mines and its strategy will be driven by the quality of opportunities rather than the choice of commodity.

Chief Executive Tom Albanese, whose speech was also distributed Friday via the Australian securities exchange, said growth was back on the agenda for the mining company. "If 2009 was about stabilization, 2010 was about stating our broader vision of becoming global sector leaders and delivering outstanding results," he said.

The company said Monday its interest in Sydney-based Riversdale had increased to 52.6%, extending the majority position it gained last week versus steel producers Tata Steel Ltd. (500470.BY) of India and Cia. Siderurgica Nacional (SID: 15.60, -0.12, -0.76%) of Brazil which together own 47%. Rio's bid for Riversdale, which is due to close April 20, values the coal company at almost US$4 billion.

Riversdale operates a colliery in South Africa and is developing a promising coking coal deposit in neighboring Mozambique. Coking coal is a key raw ingredient in steel, which is in great demand in China and elsewhere.

"We believe Rio Tinto is one of the few companies in the world with the capabilities and values to develop this project quickly and to a world-class standard," Albanese said

http://www.foxbusiness.com/markets/2011/04/14/rio-tinto-reiterates-goal-organic-growth-acquisitions/


Tom Albanese also said in his address to shareholders at Rio Tinto PLC AGM

Quote

The Energy product group aims to be a leader in the development of the world's coal and uranium resources.

The group's underlying earnings of 1.2 billion dollars, were two per cent higher than 2009. Its performance was affected by adverse exchange rate movements resulting from a stronger Australian dollar.

During 2010, the group continued to drive its focus on seaborne coal and to sell non-core assets with the divestment of Cloud Peak Energy in the US and the sale of some undeveloped coal projects in New South Wales.

Given the extraordinary rainfalls and flooding in Australia at the start of the year, we were forced to suspend production at a number of coking coal mines in Queensland.

We also chose to suspend uranium processing at ERA in the Northern Territory, which has now been extended to late July. Force majeure has now been lifted at all but one of our Queensland coal mines.

The global uranium market has been affected by events in Japan with prices falling in the first days of the disaster, although they have since rebounded.

The Japanese situation remains of great concern, but at this stage, even as events continue to unfold, we believe that nuclear power will remain a core element of the world's energy mix, especially as carbon pricing is introduced.

That said, it will take longer and be more difficult to develop new nuclear power facilities in many parts of the world.

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01171524